BACF Inc. has a number of great sources for hard and soft money loans.

While many of our lenders are private money lenders, and a few are considered institutional hard-money lenders, we now have institutional soft money. Soft money has rates down into the low fives. Rates for hard money range from the mid eights to the high elevens, typically.

Soft money is new. There are soft money programs for the following issues: Previous short sale, previous foreclosure, even prior bankruptcy. There are alternative income calculation methods available for soft money. There are interest only loans, and soft money has programs for poor credit scores, more than 10 properties owned, both non owner and owner properties and foreign nationals, and there is never a prepayment penalty. Points are rarely any higher than 2 total points. Note that neither hard money nor soft money allow highly leveraged transactions; hard money is usually capped at 65% and soft money is usually capped at 80%. Note also that soft money is only available right now for 1-4 unit properties.

For hard money, we will make every effort to keep our fees at 1-2 points; and we try to work with lenders and investors who charge no more than 2 points. If you have been quoted 3 or more points then you are likely paying too much. If you have been quoted a rate over 10% then you are also paying too much, unless you are in an exceptionally difficult situation.

Presentation of difficult hard money loans is a specialty of ours and a key to our success in this era of high demand for private money. We try to keep rates between 9 and 9.5%; usually 3 points maximum.But always ask about soft money first. Most callers who call us looking for hard money, maybe 80%, end up with soft money not hard money. Soft money has rates usually in the sixes sevens or eights.